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throwaw87

Re:Ask HN: Anyone have stock option horror stories? on Thursday March 17, 2022 @02:29AM (#30708249)
I quit my job to start a company, trusting the legal to my business partner. We exchanged a written egalitarian cap table, but he secretly gave himself >100x more shares than listed. Yet, he called me "co-founder" and wrote that I held the most shares of anyone. In actuality, I vested <0.5%/year. Nearly a year in I found out, causing me to leave after having drained my savings in exchange for almost no equity.
Re:Ask HN: Giving new co-founder 40% equity at seed round? on Monday December 28, 2020 @06:49PM (#25564783)
Thanks, good advice! Wanted to see if there were any options in advance, since it's hard to research online.
Re:Ask HN: Giving new co-founder 40% equity at seed round? on Monday December 28, 2020 @07:06AM (#25558575)
Thanks and agreed -- it is always best just to be honest and upfront about what options exist.
Re:Ask HN: Giving new co-founder 40% equity at seed round? on Monday December 28, 2020 @07:04AM (#25558564)
Thanks for the reply. Yes reluctantly, as long as we can satisfy the deferred lawyers. Hopefully it wouldn't make for a complex story when we're trying to raise a seed round - could look like we don't know what we're doing.

Was hoping a way might exist without having to dissolve since we're also short on cash.

Re:Ask HN: Giving new co-founder 40% equity at seed round? on Monday December 28, 2020 @01:54AM (#25557317)
We planned on being co-founders all along, but he came in slightly later after the legal was initially done -- then it took a while longer than I hoped to raise the seed due to COVID. He wouldn't appreciate me reneging on that, especially since he's been equally integral to the business as myself.

Ask HN: Giving new co-founder 40% equity at seed round?

I have a C-Corp and want to bring in a new 30-40% co-founder at a possible upcoming $5M valuation seed round.The problem is, every scenario I look at ends up with him paying unaffordable taxes, even if he vests 10%/year -- he is just out of college. We have minimal cash and may not be able to restructure the shares before the seed round if it's expensive to do so. (The seed round isn't...

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